BigCommerce Releases Q1 2024 Financial Performance

First Quarter Total Revenue of $80.4 Million, an Increase of 12% Versus Prior Year. Total ARR of $340.1 Million, an Increase of 7% Versus Prior Year. Enterprise ARR of $248.2 Million, an Increase of 8% Versus Prior Year.

BigCommerce Holdings, Inc. (“BigCommerce”) (Nasdaq: BIGC), an open SaaS, composable ecommerce platform for fast-growing and established B2C and B2B brands and retailers, today announced financial results for its first quarter ended March 31, 2024.

“Our first quarter results reflect a good start to the year as our total revenue exceeded $80 million, up 12% year-over-year. We also delivered strong profit improvement, with net income gaining nearly 23 points as a percent of revenue compared to last year,” said Brent Bellm, CEO of BigCommerce. “Looking forward, we anticipate additional growth momentum from our new Catalyst storefront technology, Open Source B2B Buyer Portal, and the 100+ new product releases announced as part of Next Big Thing. Our new President, Travis Hess, brings unparalleled ecommerce industry experience that will further enhance the enterprise effectiveness and customer-centricity of our sales, marketing, and professional services. Together, we aspire to set a new standard for enterprise ecommerce excellence.”

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First Quarter Financial Highlights

– Total revenue was $80.4 million, up 12% compared to the first quarter of 2023.

– Total annual revenue run-rate (ARR) as of March 31, 2024, was $340.1 million, up 7% compared to March 31, 2023.

– Subscription revenue was $61.0 million, up 13% compared to the first quarter of 2023.

– ARR from accounts with at least one enterprise plan (“Enterprise Accounts”) was $248.2 million as of March 31, 2024, up 8% from March 31, 2023.

– ARR from Enterprise Accounts as a percent of total ARR was 73% as of March 31, 2024, compared to 72% as of March 31, 2023.

– GAAP gross margin was 77%, compared to 76% in the first quarter of 2023. Non-GAAP gross margin was 78%, compared to 77% in the first quarter of 2023.

Other Key Business Metrics

– Number of enterprise accounts was 5,970, up 2% compared to the first quarter of 2023.

– Average revenue per account (ARPA) of enterprise accounts was $41,581, up 6% compared to the first quarter of 2023.

– Revenue in the Americas grew by 12% compared to the first quarter of 2023.

– Revenue in EMEA grew by 15%, and revenue in APAC grew by 11% compared to the first quarter of 2023.

Operating Loss and Non-GAAP Operating Income (Loss)

– GAAP operating loss was ($8.2) million, compared to ($23.7) million in the first quarter of 2023.

– Non-GAAP operating income (loss) was $3.2 million, compared to ($6.4) million in the first quarter of 2023.

Net Income (Loss) and Earnings Per Share

– GAAP net loss was ($6.4) million, compared to ($22.1) million in the first quarter of 2023.

– Non-GAAP net income (loss) was $5.0 million or 6% of revenue, compared to ($4.9) million or (7%) of revenue in the first quarter of 2023.

– GAAP net loss per share was ($0.08) based on 76.6 million shares of common stock, compared to ($0.30) based on 74.1 million shares of common stock in the first quarter of 2023.

– Non-GAAP net income (loss) per share was $0.07 based on 76.6 million shares of common stock, compared to ($0.07) based on 74.1 million shares of common stock in the first quarter of 2023.

Adjusted EBITDA

– Adjusted EBITDA was $4.2 million, compared to ($5.5) million in the first quarter of 2023.

Cash

– Cash, cash equivalents, restricted cash, and marketable securities totaled $266.3 million as of March 31, 2024.

– For the three months ended March 31, 2024, net cash used in operating activities was ($3.4) million, compared to ($20.8) million for the same period in 2023. We reported free cash flow of ($4.2) million.

Business Highlights:

Corporate Highlights

The company announced the addition of Travis Hess, formerly a leading ecommerce managing director at Accenture, as its new company President. Hess brings deep ecommerce experience across the range of platform competition, and his expertise in service and implementation, ecosystem partnerships, and competitive selling and positioning will help drive BigCommerce’s go-to-market transformation and operations.

BigCommerce revealed the winners of the sixth annual BigCommerce Global Partner Awards, recognizing top-performing partners among the company’s global network of agency and technology partners in its open ecosystem.

Product Highlights

In conjunction with our EMEA BigSummit in April, we announced BigCommerce’s Next Big Thing, a collection of over 100 platform enhancements, new features, and partner integrations, including Catalyst, our next-generation storefront technology. Catalyst lowers the barrier to entry for composable commerce projects for customers and agencies. These projects are now as simple as projects leveraging our out-of-the-box storefront framework, Stencil.

We have delivered major improvements to support global selling by adding even more localization features, including language, content, pricing, and promotions, to our powerful Multi-Storefront capabilities.

We also launched the Open Source B2B Buyer Portal, making the code to our popular B2B Edition Buyer Portal available for enterprise suppliers, manufacturers, distributors, and wholesalers to create bespoke buyer experiences throughout the entire buyer lifecycle. By leveraging this customizable starting point, B2B brands can decrease the time and costs to develop their ecommerce sites and streamline their operations.

We announced Feedonomics’ Instant Commerce, which enables rapid delivery and fulfillment of orders within hours of them being placed, unlocking more revenue streams for brands and retailers, marketplaces, and delivery app providers. Instant Commerce enables brands to provide both in-store pickup and fast, same-day delivery. It surfaces local inventory on digital channels, increasing sell-through for merchants and reducing barriers to purchase for shoppers.

Customer Highlights

– Modere, a global health and wellness brand of household and personal care products, launched a new composable store featuring a front-end built by ContentStack and integrations with Exigo, Braintree, Signifyd, and others.

– Sportsshoes, one of the UK’s leading sports brands specializing in running shoes, sportswear, and accessories, launched six headless storefronts, leveraging Multi-Storefront to operate channels in the UK, Spain, Germany, Italy, and France, in addition to one for their mobile app.

– 9Round, a global network of kickboxing studios, leveraged BigCommerce’s strong partner ecosystem to improve customer experience with a new corporate-run store.

– Karava, a Finnish family-owned business that offers indoor and outdoor wood solutions, launched a new headless store on BigCommerce leveraging Multi-Storefront functionality as well as B2B Edition.

– Twin Liquors is utilizing BigCommerce’s B2B Edition to offer seamless ordering and unrivaled convenience for their B2B customers.

– Healthy Pets, a leading source for top-quality pet essentials, launched a new store on BigCommerce featuring integration with their NetSuite ERP and secure payments powered by Braintree.

Feedonomics, a BigCommerce subsidiary, also added several new customers to its roster, including Whirlpool Corporation, Versatrim, Titan Footwear, Bollman Hat Company, Budget Pet Products, and Dickies Japan.

Q2 and 2024 Financial Outlook

For the second quarter of 2024, we currently expect:

– Total revenue between $79.8 million to $81.8 million, implying a year-over-year growth rate of 6% to 8%.

– Non-GAAP operating income is expected to be between $200 thousand to $1.2 million.

For the full year 2024, we currently expect:

– Total revenue between $329.7 million and $335.7 million, translating into a year-over-year growth rate of 7% and 9%.

– Non-GAAP operating income between $10.2 million and $14.2 million.

Our second quarter and 2024 financial outlook is based on a number of assumptions that are subject to change and many of which are outside our control. If actual results vary from these assumptions, our expectations may change. There can be no assurance that we will achieve these results.

We do not provide guidance for operating loss, the most directly comparable GAAP measure to Non-GAAP operating loss, and similarly cannot provide a reconciliation between its forecasted Non-GAAP operating loss and Non-GAAP net loss per share and these comparable GAAP measures without unreasonable effort due to the unavailability of reliable estimates for certain items. These items are not within our control and may vary greatly between periods and could significantly impact future financial results.

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